On May 22, 2025, Bitcoin surged to a new high, primarily due to the following reasons:

Policy Factors

Progress has been made in stablecoin legislation in the United States. The "GENIUS Stablecoin Act" has passed the procedural motion in the Senate and will enter the full Senate voting stage. If this bill passes, it will become the first federal legislation in the U.S. targeting stablecoins, which is seen by the market as a signal of regulatory clarity and could potentially bring new funding channels to the digital currency market. Hundreds of billions of dollars in new funds are expected to flow into the digital currency market through stablecoins.

Capital Inflow

Institutional funds continue to flow in. Glassnode data shows that the non-liquid supply of Bitcoin has reached a historical peak, indicating that the current upward trend is not driven by retail frenzy but is supported by institutional funds. Additionally, spot Bitcoin ETFs continue to attract capital inflows, showing strong fundamental support.

Market Sentiment

Market participants view Bitcoin as a safe haven, especially given the difficulties in U.S. budget negotiations and the increase in deficit spending, which has drawn attention to Bitcoin's hedging properties. The narrative in the crypto market is also heating up, and the volatility market reflects optimistic sentiment. The skew structure of Bitcoin call options remains stable across most maturities, suggesting that the overall market maintains a structurally bullish expectation.

Macroeconomic Environment

The macroeconomic environment has improved, with a lower interest rate environment reducing financing costs and increasing market liquidity, which is favorable for high-risk assets, including cryptocurrencies.

Corporate Behavior

An increasing number of companies are using Bitcoin as a reserve asset, which boosts the market demand for Bitcoin and drives its price upward.